TNAG-0341-FCO40-377-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 87

1

Th

Good you

Mi Crowson Cor

Mr J Dodds

Ni

TEXTILES

*

HONG KONG

ヒ

п

P09. A

I attended a meeting at the DTI this morning under the chairmanship of Mr Ridley. The Hong Kong Delegation consisted of Messrs. Cater, Ho, Dodge and Sellars.

20

COTTON TEXTILE COMMITTEE

Mr Cater began by pointing out that under Article 8 of the LTA an extension of the agreement had to be agreed one year in advance. They had looked into this question because Mr Dodge had heard talk in the Commission corridors of the possibility of extending it by 1, 2 or 3 years. Hong Kong would prefer not to see this happen and if it was proposed at the CTC meeting next week they would like to seek agreement to postpone a decision until, say, July

next year. Mr Ridley said the Japanese would oppose any such proposal and he was surprised that it was being mooted in view of the GATT Study. Perhaps an extension should be talked about in case the GATT Study failed. Mr Ridley said that he would telephone Mr Nicholl in Brussels this afternoon to ask if he had heard of this and to get him to urge our views on Herr Ernst.

3.

GATT STUDY

Mr Ridley said that the Working Party were to report to the Council by 1 January 1973. He thought the Working Party would be open to any country (including Hong Kong) who wished to participate in it. It was very necessary that Hong Kong should participate The Hong Kongers asked if we thought their position might be effected after 1.1.73 by their relationship under GATT with the UK and the EEC. Mr Ridley thought this would not cause any problem although there might be difficulties if the EEC as a whole became a member of

GATT.

4. ERNST PROPOSALS

'

Miss Lowne had been in Brussels yesterday where she attended a long meeting with Herr Ernst. He had proposed that a meeting should be held in October to discuss the Article 4 agreements but Miss Lowne had asked for greater urgency. Mr Ridley reiterated that we were ready to make our proposals to the Commission. These would include the translation of the global element of the countries' exports into the bilateral terms. On non cotton textiles Herr Ernst had proposed the merging of all EEC restrictions into one group which would apply to all the Community

/and

i

CONFIDENTIAL